Water Heaters

Warm up to savings on the second-biggest energy user in your home.

Get an instant discount with a new, energy-efficient water heater.

How it works

DTE residential natural gas customers who heat their water with gas may be eligible for an instant discount on a high-efficiency storage tank water heater or tankless water heater. DTE residential electric customers who heat their water with electricity may be eligible for an instant discount on a high-efficiency electric heat pump water heater. Eligible water heaters must meet program minimum efficiency requirements.

Use our Find a Contractor directory to identify participating contractors who participate in the water heating program.

Or use our retail instant discount page if you are installing your water heater yourself. 

Water Heaters Eligible for Instant Discounts 

Natural Gas Water Heater

ENERGY STAR® Tankless water heater minimum 0.81 UEF

ENERGY STAR® Tank water heater minimum 0.64 UEF, up to 55 gallons

Electric Water Heater

Heat Pump Water Heater 2.2 UEF or higher and up to 55 gallons


Uniform Energy Factor (UEF) is the Department of Energy's metric for water heater efficiency. A higher UEF means a water heater is more energy efficient and will cost less to operate compared to similar units.

Search the DTE directory for participating contractors.

Ready to purchase a new water heater?

Our DTE Comparison Tool informs you on prices, energy usage, product performance and offers from retailers.

Limited Funds Available

Electric Customers


Natural Gas Customers


Rebates funds are available on a first-come, first-served basis and customers are encouraged to apply early, as program funds are limited.

Furnace icon Water Heater Tips

Flush Your Water Heater

Flushing your water heater annually removes sediment that builds up. Flushing will help your unit run much more efficiently. You can hire a contractor, or do-it-yourselfers will find it to be a fairly simple project.

Check the Temperature

Most water heaters are set higher than 120°. By lowering the temperature setting to 120° you can save money. For every 10° reduction in temperature you can save from 3% to 5% on water heating costs. Consult your health professional first if you have a chronic condition or respiratory ailment.

Insulate for Efficiency

Insulate with a water heater blanket to prevent heat loss. Hire a contractor to ensure the blanket doesn’t cover an electric panel, gas valve or pressure release. Also insulate the first three feet of hot and cold water pipes connected to the water heater to help your unit maintain a consistent temperature.